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FINRA: AI and LLMs not exempt from securities laws and regs

Close-up of a person's hand holding an iPhone and using the ChatGPT GPT-4o model released in May 2024 by OpenAI, a generative artificial intelligence model that natively processes speech and vision, Lafayette, California, May 13, 2024.
Photo: Getty Images/Smith Collection/Gado

Thomas Hyrkiel, Julie DiMauro

2 min read
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In Regulatory Notice 24-09, FINRA points out that its rules are intended to be technology neutral and that firms must remain compliant when leveraging new technologies.

Last week, FINRA issued Regulatory Notice 24-09, reminding member firms that its rules and the securities laws apply to the use of artificial intelligence (AI), including large language models (LLMs) and other generative AI technology, just as they apply when member firms use any other technology.  

Although the

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